German online takeaway food company Delivery Hero said it would propose to elect Sachem Head founder Scott Ferguson as an additional member of its supervisory board at a shareholders' meeting on 19 June.
Delivery Hero has lately attracted interest from activist investor Sachem Head, after facing investor concern about its ability to generate cash and repay outstanding debt organically while still delivering profitability and growth.
Martin Enderle, Schibsted's Kristin Skogen Lund and Prosus' Roger Rabalais were also proposed as members to the board, with Lund nominated to replace Enderle as chairperson.
The supervisory board would thus expand from six to eight members.
Sachem Head, which holds a stake of about 3.6% in the company, said it supports Delivery Hero's proposed expansion of the supervisory board and its nominees.
"We see great promise in the food delivery market and Delivery Hero's strong competitive positions in highly attractive markets," Ferguson, founder and portfolio manager of Sachem Head, said in a separate statement.
Ferguson's appointment would last one year, Delivery Hero said.
First-Quarter Performance
Last week, Delivery Hero raised its revenue guidance for the year, after reporting better-than-expected growth in the first quarter, on rising orders and advertising revenue.
It now expects revenue to rise in a range of 18%-21%, up from previously expected 15%-17%.
The outlook may reassure investors who have worried that food delivery companies have struggled to retain customers in an overcrowded market after the boom during the pandemic when people treated themselves during lockdowns.
Quarterly total segment revenue increased 21% to €3.02 billion ($3.23 billion) in constant currency and excluding hyperinflationary accounting. In reported currency, it grew 17% to €2.95 billion.
The results compare to the €2.81 billion estimated by analysts in a company-provided poll.
